In "Major Banks," China International Capital Corporation (CICC): Meituan's fundamentals have passed the left side, and there is long-term patience

CICC released a report stating that the bank recently invited Meituan-W (03690.HK) for a non-deal roadshow, where the management shared the latest dynamics of competition in the instant retail delivery and in-store hotel and travel businesses, as well as developments in overseas operations. Recently, the focus of delivery competition has shifted to high-value users, and Meituan is confident in driving profitability back to a reasonable level in the long term. The in-store hotel and travel business is actively responding to competition from Douyin, with short-term profits declining sequentially. Overseas progress is rapid, maintaining guidance that the overall loss from new businesses next year will be lower than this year.

CICC maintains its forecast for Meituan's adjusted net loss of RMB 16.8 billion in 2025 and adjusted net profit of RMB 19.6 billion in 2026, maintaining an "outperform industry" rating and a target price of HKD 125, corresponding to a 15 times adjusted price-to-earnings ratio for 2027 and a 23% upside potential. The current stock price corresponds to a 12 times adjusted price-to-earnings ratio for 2027